If the overtime hours of 73 is for the entire amount of overtime, it does need to be split to only deduct the overtime premium (the "half" pay of time-and-a-half).
For example, say you worked 48 hours in one week at $30 an hour. If your paystub reported 48 regular hours at $30 an hour and 8 hours overtime "premium" at $15 per hour, no splitting is required. However, if the stub (and subsequently matching letter or W-2) reported 40 hours at $30 per hour plus 8 hours overtime at $45 per hour, you must split that between base pay and overtime premium.
If you received information on your W-2:
- If, based on the example, you have determined that no splitting is needed and the amount is only the overtime premium, you may enter that after you have completed your W-2 entry.
- Enter the information from your W-2 as reported. Continue through the interview, and eventually you will see a screen that says "Tell us about your overtime for this W-2." The interview will ask "Is the $xx in box 14 your overtime premium?" Here, answer "No, it's something else", and continue.
- You will need to confirm that you are a non-exempt employee. Finally, you will be asked "Was all of your overtime ($xx) paid at a rate of time-and-a-half?" Here, select "No" and continue. On the next screen, enter the eligible overtime premium paid in 2025.
If you are using paystubs:
- Complete entering the W-2, choose continue, then select that you have the uncommon situation of overtime.
- On the screen "Let's see if your overtime qualifies as tax-free," either select "No help needed—I know what to enter."
- The next screen will ask if you were or were not an exempt employee. Note that you must be non-exempt in order to be eligible for the overtime deduction.
- Next, enter your deductible overtime premium only.
Here is an article you may find helpful: No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025
